Equidy provided the hard money loan for a complicated fix and flip in California. After some setbacks, the client was able to flip a completed property with an increase in value of $420,000.
The challenge
Recently a client who previously worked with Equidy six years prior came back to receive funding for a new fix and flip project.
The property was a huge opportunity in a central part of North Oakland. In addition to the kitchen and living room space, it boasts two bedrooms, one bathroom and a bonus room on the main level as well as a basement downstairs that covers almost the full footprint of the home.
We provided a $1 million loan to enable the client to purchase the property for $888,000, setting aside $200,000 for construction and repairs. The client was only required to put 10% down towards the purchase of the property.
In the middle of renovations, the house caught on fire due to electrical issues. Much of the repairs that had already been completed were damaged and would need to be replaced or completely redone.
Because our client had insurance, some of the repairs were taken care of instead of her having to pay them out of pocket.
The process took much longer than expected but Equidy continued to partner with the client sticking with her to see the renovations and resale through to completion.
The result
The borrower was able to completely renovate the entirety of the home. The kitchen received a full makeover with brand new cabinetry, appliances, flooring and fixtures. The living room was transformed from a run down, decaying space to a beautifully bright and welcoming meeting room. The bedrooms and bathrooms were all updated to reflect a modern feel and the outside of the home repainted with a brand new driveway installed.
Equidy was able to provide the borrower with a 100% finance loan; purchase, fix and flip of the property basing the loan on the After Repair Value (ARV). After one year of process, the home was resold for $1.31 million.
We were able to maintain our relationship with the client through a very difficult process. In reality, she would’ve unlikely got funding for her project through any other company or means.
The end result was profitable. The value of the home at resale had increased by $420,000.
This loan was not only a benefit to the borrower, but also to the realtor who represented them as the buyer for the home and then one year later, listed it for sale allowing for two deals.
How can we help you?
Download our free ebook, The Flippers Guide to Funding Your Property Empire, to learn about funding strategies for your property dreams.
You can also book a free, no obligation strategy call with one of our experts to talk about the finance options available for your project.
